O.C. sees boost in offseason vacation rentals

Another attractive feature of this Crystal Cove vacation home is the grand room - an open area combining the kitchen and living areas. PAUL RODRIGUEZ, THE ORANGE COUNTY REGISTER

1 of 9

This vacation home is in the gated Crystal Cove neighborhood in Newport Beach. Rental of vacation homes in the off-season has seen an increase in seven Orange County markets. PAUL RODRIGUEZ, THE ORANGE COUNTY REGISTER

1 of 9

A master bath just off the master bedroom is an attractive feature in this vacation home in the Crystal Cove neighborhood in Newport Beach. PAUL RODRIGUEZ, THE ORANGE COUNTY REGISTER

1 of 9

A reading nook is the perfect place to relax in the master bedroom of a Crystal Cove vacation home that overlooks the Pacific Ocean. PAUL RODRIGUEZ, THE ORANGE COUNTY REGISTER

1 of 9

A guest room just off the main house is a unique feature of this Crystal Cove vacation home in Newport Beach. PAUL RODRIGUEZ, THE ORANGE COUNTY REGISTER

1 of 9

A massage table is reflected in a mirror of the massage room of this Crystal Cove vacation home in Newport Beach. PAUL RODRIGUEZ, THE ORANGE COUNTY REGISTER

1 of 9

A bedroom of this Crystal Cove vacation home opens to the inland side of the neighborhood. PAUL RODRIGUEZ, THE ORANGE COUNTY REGISTER

1 of 9

Bent wood railing mimics the spiral staircase in this Ritz Pointe vacation home in Dana Point. PAUL RODRIGUEZ, THE ORANGE COUNTY REGISTER

1 of 9

This Ritz Pointe vacation home overlooks the Monarch Beach Golf Course. Rental of vacation homes in the off-season is up in Orange County. PAUL RODRIGUEZ, THE ORANGE COUNTY REGISTER

Orange County is known as a popular summer destination, but the county also is seeing a boost in offseason vacation rentals this year.

The upswing is a combination of increased demand and more local homeowners putting their properties on the market for short-term stays, local vacation-rental experts say.

"The economy has really helped our business because people even at the higher end are struggling just as much as the rest of us, so they're really seeking new revenue streams," said Paul Aubin, president and owner of Newport Beach Vacation Properties, which helps homeowners prepare their luxury homes for use as rentals.

"It has spurred on more property owners that would never have considered doing this during the good times," he said.

The online vacation-rental marketplace HomeAway reports a 72 percent increase in rental inquiries from last year for offseason vacation rentals in Orange County. Balboa Peninsula, for example, has a 239 percent increase in customer inquiries, Anaheim is up 106 percent, Huntington Beach 78 percent, San Clemente 76 percent and Laguna Beach 53 percent over the past year, HomeAway reports. The site connects travelers with property owners, who handle bookings themselves.

Local vacation-rental agents say the client base for the offseason is much different from the summer-vacation crowd.

"The rental clientele we have are coming for all different reasons," said Cathy Porter, Realtor with Laguna Coast Real Estate, which specializes in vacation properties.

Many vacationers look for lower costs and fewer crowds in the offseason. Porter said the visitors also include newcomers who are relocating to the area and need to rent while searching for a home, travelers on longer business trips, people remodeling local homes and in need of other places to stay, and those receiving medical treatment in the area and looking to convalesce.

Many budget-minded travelers eschew hotels in favor of rental homes, where they can minimize the costs of food, parking and other expenses, Aubin said.

"Because of the economy and people struggling, they're no longer taking their vacations to Europe and Australia and their expensive cruises," he said. "They're now traveling to Newport Beach and splitting the cost of a large home." This includes families going in on a vacation together to split the rental cost, he added: "It ends up being less than staying in a hotel room, and everyone is under one roof."

The number of vacation-rental listings available in Orange County has grown, too.

HomeAway reports a 37 percent increase in the county's total listings over this time last year. That includes a 478 percent jump in Balboa Peninsula listings, a 46 percent jump in Anaheim, a 27 percent increase in Huntington Beach and a 19 percent boost in Laguna Beach.

This growth in vacation listings reflects homeowners looking to leverage income from their properties in a weaker economy.

Homeowners who list their homes as vacation rentals for an average 19 weeks a year can generate an average of $26,000 a year in additional income, according to a report by HomeAway.

Aubin said that some of those homeowners will take that income to fund their own vacations or use it to pay their mortgages.

Porter has seen an increase in clients who previously rented a vacation property and now want to purchase a second home for use as a long-term vacation rental. She said a family she helped book a rental in Laguna Beach last summer loved the area so much that it bought a property to visit June through October. The family rents out the Crystal Cove home in the offseason, she said. "We listed this house at $20,000 per month and booked it for a five-month stay in just two days," Porter said.

"Since our primary goal was to use it June through October, we decided to rent it during the offseason months and were quite impressed with the lucrative income this venture has brought us," said Steve Bernstein, the homeowner. "The fact that we will have an occupant there to watch over the property is also an added bonus."

Porter said the five-bedroom, six-bathroom, 3,750-square-foot ocean-view home can command up to $40,000 per month in the summer rental season.

"Offseason, the rates go down tremendously, and the availability goes up," Aubin said. "The whole weekly season during the fall transformed to multiple months during the fall, winter and spring," he said.

The offseason rate transformation is attractive to many travelers, Aubin said, adding to the appeal of renting in nonpeak months. A summer property listing may command $3,000 a week in rent, and that same rental's rate changes to $4,500 a month in the offseason, he said.

That's what supports the increase in the county's rental listings – homeowners realizing that even in the offseason, they can generate income from their property, Porter said.

"They are discovering that this is a good investment," she said. "It's a very lucrative project."

User Agreement

Keep it civil and stay on topic. No profanity, vulgarity, racial
slurs or personal attacks. People who harass others or joke about
tragedies will be blocked. By posting your comment, you agree to
allow Orange County Register Communications, Inc. the right to
republish your name and comment in additional Register publications
without any notification or payment.